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Well, I found this on Legal Zoom: "Agent Not LiableAlthough a financial POA gives you control over the finances of the principal, you do not become personally liable for debts incurred by the principal. This means that even if nursing home bills exceed the principal's ability to pay, you do not have to use your assets to cover the outstanding balance. Because your personal finances are not relevant, they also do not affect the principal's ability to receive need-based support, such as Medicaid. The only exception to this rule would be if you entered into a written agreement with the nursing home to be personally responsible for expenses incurred by the principal."

My mother is in a nursing home too and they send me her bills. They are also taking all of her social security (other than $28). I cannot afford to give them anything either. You need to know that if they don't get payment after a while (unless you are able to get Medicaid for her to pay for those bills), the nursing home may seek legal guardianship over her. Of course, your sister is 90. Is she mentally competent? Is there going to be a time when she will be recovered and able to go home? I'm having this problem with my mother (she's 73) and her nursing home is trying to label her mentally incompetent. I had her evaluated by an outside doctor who deemed her mentally competent. Anyway, if your sister is in poor health and will most likely need their care for the rest of her life, it does not matter too much if they get guardianship unless she owns real assets. If she owns her own home or has a pension fund, stocks, bonds, trusts, etc. If she has those things and they get guardianship, they will have access to her assets and they will take them to cover their costs.

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